North Carolina Down Payment Support Systems

Payments Gateway - These programs would be the Mortgage Credit Certificate and also the Down Payment Assistance Program.

Also you buy a property between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of the plans, you could also be eligible for the $8,000 tax credit merely enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the previous three years. That is the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with average and low incomes. All home owners can claim an itemized deduction. The MCC takes this a step further.

You are able to claim 20% of the interest you pay on your own mortgage as a credit in your federal income taxes if you qualify for the MCC. It's possible for you to save as much as .

You will find a way to unite this with the $8,000 tax credit if you do qualify for the MCC, for 2009. This may reduce the tax liability of a buyer's by $10,000.

Who qualifies for an MCC is based on your own income and also the cost of the home you are purchasing. Household income is defined as the “gross income of the mortgagor and every other man expected to live in the home who is 18 years old or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Cost Limits New House $220,000 Existing Home $210,000

Who Qualifies for Down Payment Help?

The buyer only needs to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This program has more rigorous income limitations than the MCC program outlined above. Like the MCC application, it can be utilized in combination with all the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nevertheless, can not be applied together with all the MCC. That is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Persons $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing Home $210,000